Limited Liability Partnership
Summary of LLP i.e. Limited Liability Partnership:-
1. LLP is a body corporate and it’s a legal entity separate from its partners.
2.The Limited Liability Partnership (LLP) is an incorporated partnership established and registered under the Limited Liability Partnership Act 2008.
3.LLP has a perpetual succession.
4.In case of LLP, Partner’s Liability is limit to their agree contribution.
5.Indian Partnership Act, 1932 is not applicable to LLP.
6.LLP must have at least 2 partners.
7.LLP must have at least 2 individuals as Designated Partners ( At least 1 of them will be Resident of India).
8.Audit for LLP is mandatory if the capital contributed exceed Rs. 25 lakhs or if the turnover does exceed Rs. 40 lakhs.
9. There is no maximum limit on the number of partners in LLP.
10. Chapter XI of LLP Rules, 2009 deals with Foreign Limited Liability Partnership.
11.LLP can be wound up voluntarily if, LLP passes a resolution to windup LLP with permission of atleast 75% of the total number of its partners.
12.The Foreign LLP can establish a place of business at India by filing Form No. 27 (Giving the particulars of incorporation of foreign LLP, details of DPs/ partners of that foreign LLP and details of atleast two authorised representatives).
13.It’s mandatory to execute and file LLP Agreement. (Form No. 3).
14.The fees for Inspection of a LLP is Rs 50/- through MCA Website.
15.There is no any requirement or restriction on minimum capital contribution to form a LLP.
16.LLP cannot come out with IPO.
17.There is no any tax for Conversion of Partnership firm into LLP.
18.The partner will not be responsible for other partner’s misconduct.
19.The Non-resident Indians and foreign nationals can formed a LLP with atleast 1 Individual Indian National.
20.Remuneration of partners is to be taxed under the head “Income from Business & Profession”.
21.LLP is not eligible for presumptive taxation under Income tax.
22.The Income Tax Act mentioned the boundary limit upto which any payment of salary, bonus, remuneration, commission will be allowed as the deduction for income of LLP, limits of remuneration are outlined below:
On First Rs 3,00,000 of book profit or
in case of loss
Rs 1,50,000 or at the rate of 90% of the book-profit, whichever is moreOn the balance of book profitat the rate of 60%
23.LLP must not be form for charitable purposes.
24.Minor cannot become Partner at LLP.
25.The Body Corporate can definitely become partner at LLP.
Limited Liability Partnership
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